Starting today teams may begin to place the franchise tag on their players. Previously teams would pay a player the average of the top five salaries for their position, guaranteed, for the single season. That forumla was changed in the latest CBA however.
The formula for calculating the amount of each franchise tender has changed. Instead of using the average of the Top 5 cap numbers from the previous season at each position, the amounts of the franchise (and transition tags) at each position from the previous five seasons will be added up and divided by the sum of the salary caps from the previous five seasons (for the uncapped 2010 season, the league will take the average of the 2009 and 2011 salary caps).
The resulting percentage will be multiplied by the salary cap from the upcoming season to determine the non-exclusive franchise tag and transition tag amounts.